The dollar is finally behaving as it should, after six months when its haven status was undermined and usual economic relationships broke down. This could be a sign that its terrible run of weakness is nearing an end.
Israel’s attack on Iran tested the dollar’s status amid a flight to safety. The greenback passed: The ICE U.S. Dollar index is up about 1% since the first bombing. More important, the currency behaved as it should, rising on days dominated by fear and falling on days when fear receded.
